In today’s world, where artificial intelligence (AI) is replacing several jobs, one needs to build a reliable source of income. Everything has a cycle: agriculture, oil, and gas; they all depend on demand and supply dynamics. In such a scenario, a reliable income partner is the one that adapts to the change and keeps its balance sheet leverage low. This 3.9% yielding stock meets these needs and has a reliable monthly dividend.
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A monthly dividend stock worth knowing about
Granite REIT (TSX: GRT.UN) is the industrial REIT that caters to the storage and warehouse needs of industries and e-commerce. It is among the few REITs that have been paying and growing dividends regularly for the last 13 years, without any dividend cut.
It started as the warehouse partner of Magna International and then expanded its property portfolio to 141 properties across North America and Europe. The rising trade tensions did impact Granite in the first half of 2025, but demand picked up, and it closed the year with a 98% occupancy, up 310 basis points from 2024.
Being in the warehousing space, demand keeps fluctuating, and occupiers get more demanding on features like cold storage and environmentally friendly storage. Granite actively monitors these demands and recycles its capital by selling low-yield properties and buying high-yield ones with state-of-the-art features.
Granite retained 92% of its 2025 lease maturities and increased the average rental rate by a remarkable 48%. It is seeing the momentum continue in 2026, having renewed 57% of its 2026 lease maturities at an average rent increase of around 10%.
Despite such strong operations, Granite maintains a conservative net debt of 35% of its fair value of investment properties. Its debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is 7.2 times, lower than the peer average of 9.3 times.
The 3.9% yield of Granite REIT with monthly payouts
The strong financial discipline and capital recycling have helped Granite REIT steadily grow its net operating income and funds from operations (FFO) since 2021. Its FFO grew at a compounded annual growth rate (CAGR) of 10% between 2021 and 2026 (projected).
This gives Granite REIT the flexibility to grow its dividend per share by 4.4% in 2026. As the FFO grew faster than dividends, its dividend payout ratio reduced to 57% in 2025 from 61% in 2024.
The REIT trades at $89 per unit and gives an annual dividend of $3.45 per share. That converts into an annual dividend yield of 3.9%. On the face of it, the yield doesn’t look attractive when you have other REITs offering 5–6% yield.
However, when you consider the dividend growth factor, Granite REIT is a stock worth owning.
Investing $10,000 in Granite REIT can earn you $32.50 in monthly income
A $10,000 investment in Granite REIT in December 2020 would have bought you 130 shares, which would have produced $390 a year or $32.50 a month in dividends. The last five years of 3.4% average dividend growth have increased its dividend to $461.50 a year or $38.40 a month. The annual dividend yield on a $10,000 investment has increased from 3.9% to 4.6%.
| Year | Granite REIT Dividend Per Share | Annual Dividend Income on 130 Units |
| 2026 | $3.55 | $461.50 |
| 2025 | $3.40 | $442.00 |
| 2024 | $3.30 | $429.00 |
| 2023 | $3.20 | $416.00 |
| 2022 | $3.10 | $403.00 |
| 2021 | $3.00 | $390.00 |
The 4.6% yield still falls short of the 6.3% yield offered by Freehold Royalties with cyclical growth and without a dividend reinvestment plan (DRIP), and the 5.5% yield of CT REIT with 2.5–3% dividend growth and a DRIP.
How to invest in Granite REIT
Granite REIT may not be one of the best in terms of returns. However, not all investments are made keeping returns in mind. Some investments are made to diversify risk and get assured returns when one sector collapses.
Granite gives you exposure to e-commerce seasonality and real estate dividends. Its share price hovers between $65 and $80. This 23% range can create a dividend range of 5.46%–3.88%. The REIT tends to fall to its seasonal low in October and seasonal high in February. You could add this to your watchlist and buy the units in October in the $65–$68 price range and lock in over a 5% yield with dividend growth.
